Realty Income Announces Operating Results For First Quarter 2017

Financial Results

Revenue

Revenue for the quarter ended March 31, 2017 increased 11.6% to $298.0 million, as compared to $267.1 million for the same quarter in 2016.

Net Income Available to Common Stockholders

Net income available to common stockholders for the quarter ended March 31, 2017 was $71.6 million, as compared to $63.5 million for the same quarter in 2016. Net income per share for the quarter ended March 31, 2017 was $0.27, as compared to $0.25 for the same quarter in 2016.

Net income and funds from operations available to common stockholders for the quarter ended March 31, 2017 were impacted by a $13.4 million non-cash redemption charge on the Class F preferred shares that were redeemed in April 2017, which represents $0.05 per share. This charge is based on the excess of redemption value over the carrying value of the Class F preferred stock that represents the original issuance cost that was paid in 2012.

Net income and funds from operations available to common stockholders for the quarter ended March 31, 2017 were impacted by a non-cash gain of $1.3 million, or $0.005 per share, resulting from fair value adjustments on our interest rate swaps. Each quarter we adjust the carrying value of our interest rate swaps to fair value. The changes in the fair value of our interest rate swaps are recorded to interest expense.

The calculation to determine net income for a real estate company includes impairments, gains on property sales and/or fair value adjustments on interest rate swaps. These items can vary from quarter to quarter and can significantly impact net income and period to period comparisons.

Funds From Operations Available to Common Stockholders (FFO)

FFO for the quarter ended March 31, 2017 increased 9.7% to $187.2 million, as compared to $170.6 million for the same quarter in 2016. FFO per share for the quarter ended March 31, 2017 increased 4.4% to $0.71, as compared to $0.68 for the same quarter in 2016.

Adjusted Funds From Operations Available to Common Stockholders (AFFO)

AFFO for the quarter ended March 31, 2017 increased 14.4% to $201.3 million, as compared to $175.9 million for the same quarter in 2016. AFFO per share for the quarter ended March 31, 2017 increased 8.6% to $0.76, as compared to $0.70 for the same quarter in 2016.

The company considers FFO and AFFO to be appropriate supplemental measures of a Real Estate Investment Trust's (REIT's) operating performance. Realty Income defines FFO, a non-GAAP measure, consistent with the National Association of Real Estate Investment Trusts' (NAREIT's) definition, as net income available to common stockholders, plus depreciation and amortization of real estate assets, plus impairments of real estate assets, and reduced by gains on property sales. AFFO further adjusts FFO for unique revenue and expense items, which the company believes are not as pertinent to the measurement of the company's ongoing operating performance. Presentation of the information regarding FFO and AFFO is intended to assist the reader in comparing the operating performance of different REITs, although it should be noted that not all REITs calculate FFO and AFFO in the same way, so comparisons with other REITs may not be meaningful. FFO and AFFO should not be considered as alternatives to reviewing our cash flows from operating, investing, and financing activities. In addition, FFO and AFFO should not be considered as measures of liquidity, our ability to make cash distributions, or our ability to pay interest payments. See the reconciliations of net income available to common stockholders to FFO and AFFO on pages six and seven of this press release. 

Dividend Increases

In March 2017, Realty Income announced the 78^th consecutive quarterly dividend increase, which is the 91^st increase in the amount of the dividend since the company's listing on the New York Stock Exchange (NYSE) in 1994. The annualized dividend amount as of March 31, 2017 was $2.532 per share. The amount of monthly dividends paid per share increased 6.1% to $0.624 in the first quarter of 2017 from $0.588 in the first quarter of 2016.

Real Estate Portfolio Update

As of March 31, 2017, Realty Income's portfolio of freestanding, single-tenant properties consisted of 4,980 properties located in 49 states and Puerto Rico, leased to 250 different commercial tenants doing business in 47 industries. The properties are leased under long-term, net lease agreements with a weighted average remaining lease term of 9.7 years.

Portfolio Management Activities

The company's portfolio of commercial real estate, owned primarily under 10- to 20-year net leases, continues to perform well and provides dependable rental revenue supporting the payment of monthly dividends. As of March 31, 2017, portfolio occupancy was 98.3% with 83 properties available for lease out of a total of 4,980 properties in the portfolio, as compared to 98.3% as of December 31, 2016, and 97.8% as of March 31, 2016. Economic occupancy, or occupancy as measured by rental revenue, was 99.0% as of March 31, 2017, as compared to 98.9% as of December 31, 2016, and 98.8% as of March 31, 2016.

Since December 31, 2016, when the company reported 84 properties available for lease, the company had 60 lease expirations, re-leased 49 properties and sold 12 vacant properties during the quarter ended March 31, 2017. Of the 49 properties re-leased during the first quarter of 2017, 46 properties were re-leased to the same tenants and three were re-leased to new tenants after a period of vacancy. The annual new rent on these re-leases was $8,007,000, as compared to the previous annual rent of $7,731,000 on the same properties, representing a rent recapture rate of 103.6% on the properties re-leased during the quarter ended March 31, 2017.  

Rent Increases

During the quarter ended March 31, 2017, same store rents on 4,322 properties under lease increased 1.6% to $250.2 million, as compared to $246.2 million for the same quarter in 2016.  

Investments in Real Estate

During the quarter ended March 31, 2017, Realty Income invested $370.7 million in 60 new properties and properties under development or expansion, located in 18 states. These properties are 100% leased with a weighted average lease term of approximately 16.4 years and an initial average cash lease yield of 6.1%. The tenants occupying the new properties operate in 13 industries, and the property types are 98.7% retail and 1.3% industrial, based on rental revenue. Approximately 68% of the rental revenue generated from acquisitions during the first quarter of 2017 is from investment grade rated tenants.

Property Dispositions

During the quarter ended March 31, 2017, Realty Income sold 14 properties for $31.2 million, with a gain on sales of $10.5 million, as compared to 11 properties sold for $11.0 million, with a gain on sales of $2.3 million, during the same quarter in 2016.

Liquidity and Capital Markets

Capital Raising

In March 2017, Realty Income issued $300 million of senior unsecured notes due 2047 and $400 million of senior unsecured notes due 2026. The public offering price for the 2047 notes was 99.97% of the principal amount for an effective yield to maturity of 4.65%. The public offering price for the 2026 notes was 102.98% of the principal amount for an effective yield to maturity of 3.75%. The 2026 notes constituted a further issuance of, and formed a single series with, the $250 million aggregate principal amount of senior notes due 2026, issued in September 2014.

During the quarter ended March 31, 2017, Realty Income raised $791.7 million from the sale of common stock at a weighted average price of $61.77 per share. 

Credit Facility

Realty Income has a $2.25 billion unsecured credit facility. This credit facility is comprised of a $2.0 billion revolving credit facility and a $250 million five-year unsecured term loan. The credit facility also has a $1.0 billion expansion feature. As of March 31, 2017, Realty Income had no outstanding balance on its revolving credit facility.

Redemption of Preferred Stock

In April 2017, Realty Income redeemed all 16,350,000 outstanding shares of the company's 6.625% Monthly Income Class F Preferred stock for $25 per share, plus accrued dividends. The issuance of the redemption notice prior to the end of the quarter required us to reclassify $408.8 million of preferred stock from stockholders' equity to liabilities on our consolidated balance sheet at March 31, 2017.

2017 Earnings Guidance

We estimate FFO per share for 2017 of $3.00 to $3.06, an increase of 4.2% to 6.3%, respectively, over 2016 FFO per share of $2.88. FFO per share for 2017 is based on a net income per share range of $1.19 to $1.25, plus estimated real estate depreciation and impairments of $1.90 per share, and reduced by potential estimated gains on sales of investment properties of $0.09 per share (in accordance with NAREIT's definition of FFO).

We estimate AFFO per share for 2017 of $3.00 to $3.06, an increase of 4.2% to 6.3%, respectively, over 2016 AFFO per share of $2.88. AFFO further adjusts FFO for unique revenue and expense items, which are not as pertinent to the measurement of Realty Income's ongoing operating performance.

Additional earnings guidance detail can be found in Realty Income's supplemental materials available on Realty Income's corporate website at https://www.realtyincome.com/investors/financial-information/quarterly-results/default.aspx.

Conference Call Information

In conjunction with the release of Realty Income's operating results, the company will host a conference call on April 26, 2017 at 11:30 a.m. PT to discuss the results. To access the conference, dial (888) 287-5516. When prompted, provide the access code: 5409223.

A telephone replay of the conference call can also be accessed by calling (888) 203-1112 and entering the access code: 5409223. The telephone replay will be available through May 10, 2017. A live webcast will be available in listen-only mode by clicking on the webcast link on the company's home page or in the investors section at www.realtyincome.com. A replay of the conference call webcast will be available approximately two hours after the conclusion of the live broadcast. The webcast replay will be available through May 10, 2017. No access code is required for this replay.

Supplemental Materials

Supplemental materials on the first quarter of 2017 operating results are available on Realty Income's corporate website at https://www.realtyincome.com/investors/financial-information/quarterly-results/default.aspx.

About Realty Income

Realty Income, The Monthly Dividend Company^®, is an S&P 500 company dedicated to providing stockholders with dependable monthly income. The company is structured as a REIT, and its monthly dividends are supported by the cash flow from over 4,900 real estate properties owned under long-term lease agreements with regional and national commercial tenants. To date, the company has declared 562 consecutive common stock monthly dividends throughout its 48-year operating history and increased the dividend 91 times since Realty Income's public listing in 1994 (NYSE: O). The company has in-house acquisition, portfolio management, asset management, credit research, real estate research, legal, finance and accounting, information technology, and capital markets capabilities. Additional information about the company can be obtained from the corporate website at www.realtyincome.com.

Forward-Looking Statements

Statements in this press release that are not strictly historical are "forward-looking" statements. Forward-looking statements involve known and unknown risks, which may cause the company's actual future results to differ materially from expected results. These risks include, among others, general economic conditions, local real estate conditions, tenant financial health, the availability of capital to finance planned growth, continued volatility and uncertainty in the credit markets and broader financial markets, property acquisitions and the timing of these acquisitions, charges for property impairments, and the outcome of any legal proceedings to which the company is a party, as described in the company's filings with the Securities and Exchange Commission. Consequently, forward-looking statements should be regarded solely as reflections of the company's current operating plans and estimates. Actual operating results may differ materially from what is expressed or forecast in this press release. The company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date these statements were made. 

CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share amounts) (unaudited)
		Three Months			Three Months
		Ended 3/31/17			Ended 3/31/16
REVENUE
Rental		$	285,821		$	256,801
Tenant reimbursements			11,229			9,105
Other			975			1,210
Total revenue			298,025			267,116
EXPENSES
Depreciation and amortization			121,097			107,933
Interest			59,305			60,678
General and administrative			13,565			12,318
Property (including reimbursable)			19,075			15,105
Income taxes			1,047			964
Provisions for impairment			5,433			1,923
Total expenses			219,522			198,921 Werbung Mehr Nachrichten zur Realty Income Inc. Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 25.04.24 - PR Newswire BH Macro Limited - Transaction in Own Shares 25.04.24 - PR Newswire BlackRock Energy and Resources Income Trust Plc - Portfolio Update 25.04.24 - PR Newswire Redde Northgate Plc - Director/PDMR Shareholding SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59